Can expenses paid to an agency that provides in-home, live-in caregivers (not nurses) be deducted as a medical expense under the Maintenance and Personal Care Services clause of Long-Term Care?

[afeckste]

My Mom's expenses and the provider are qualified under her Long-Term Care Insurance. The live-in caregiver is not an RN or CNA - she provides daily help with bathing, dressing, medications, and meals as well as help with laundry and general household care. My Mom definitely falls under needing care for protection from threats to health and safety due to cognitive impairment - she has Alzheimer's.

Also, expenses are paid for the entire month in advance.  In which tax year should the January 2021 payment be deducted if the check was written and cleared before 12/31/2020?

[MaryK4 · Accepted solution]

Yes, you can deduct the maintenance or personal care services as a medical expense deduction.  

Maintenance or personal care services is care which has as its primary purpose the providing of a chronically ill individual with needed assistance with his or her disabilities (including protection from threats to health and safety due to severe cognitive impairment).

If you are a cash taxpayer, you deduct in the year the expenses were paid so you can include the January 2021 expenses that you paid in December.

[afeckste]

Thank you.

Where is this input in TurboTax? Under Long-Term Care expenses in Deductions?

[PattiF]

Yes, you would enter the expenses in the Deductions section under long-term care expenses. Include all other medical expenses in the Medical deductions section. 

And include the amount on the 1099-LTC, Box 1, in the section for Medical reimbursements in the Deductions section.